The United Arab Emirates and Saudi Arabia announced that grants and loans worth $8bn will be given to Egypt, days after the expulsion of Islamist president Mohamed Morsi, Reuters and the UAE-run news agency WAM reported on Tuesday.
The UAE has approved a $1bn grant to Egypt, as well as a $2bn loan, WAM said citing an unidentified source, adding that the loan will be in the form of an interest-free deposit with the Central Bank of Egypt. The UAE’s $3bn may be a part of a larger financial package from the Gulf emirate, Reuters said according to an unidentified Egyptian source.
The offer was made during a meeting between a UAE delegation to Cairo, led by UAE National Security Chief Sheikh Hazza bin Zayed al-Nahyan, and Egypt’s interim president Adly Mansour.
Meanwhile, Saudi Arabia approved a $5bn in aid to Egypt, according to Reuters.
This comes as Egypt’s interim government grapples with a damaged economy hit by years of political instability and security turbulences. According to latest figures on thecentral bank’s website, net international reserves in June reached $14.9bn, a $1.1bn drop from the earlier month and about 60% lower that its levels on the eve of the 2011 revolution.
“The United Arab Emirates stands by Egypt and its people in this crucial phase. It has confidence in the choices made by its people, as well as the people’s ability to overcome the current challenges,” Sheikh Hazza said, according to WAM.
“The security and stability of Egypt are the foundation for Arab security,” he said.
Egypt’s army booted Morsi last week, a year after he came to power, following days of massive protests across the country. While Qatar has given cash-strapped Egypt aid of about $8bn over the past year, ties between the North African country and the Gulf emirate was jeopardized by several comments made by leading members of Morsi’s Muslim Brotherhood.